Integrafin Holdings Plc · LSE:IHP
Integrafin — FY2024 Earnings Presentation
28 slides from Integrafin's earnings presentation, Dec 18, 2024
Slide 1: Results Presentation – Full year ended 30 September 2024
Results Presentation Full year ended 30 September 2024 The Group continues to deliver strong financial and operational progress
Slide 2: Agenda
Agenda 1. Group FY24 highlights 2. Financial update 3. Business update 4. Summary 5 Q&A 2
Slide 3: Group highlights FY24
Group highlights FY24 Award winning Positive consumer Record FUD levels Strong net inflows Financial momentum proposition outcomes Best Platform Provider IHP group has delivered Net inflows of £2.5bn in (AUM over £40bn) and We continue to deliver Period-end FUD on the growing underlying PBT FY24, at
Slide 4: Established business model delivering growth
Established business model delivering growth Leveraging leading customer service, proprietary technology, and scalable operations to drive growth FY24 results Invest in the Generate cash and Drive growth Deliver on dividend business and grow maintain a strong balance policy earnings sheet • Advisers
Slide 5: Financial update
=: IntegraFin Financial update
Slide 6: Group Financial KPIs FY24
Group Financial KPIs FY24 Average daily Funds Under Direction (£bn) Group revenue (£m) 11% CAGR 8% CAGR FY20-24 FY20-24 144.9 59.6 +7% +11% 134.9 133.6 52.5 53.6 123.7 47.2 38.7 107.3 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Underlying earnings per share and dividend Group underlying profit
Slide 7: Growing Group revenue
Growing Group revenue FY23 Total Platform FY24 Total Platform Revenue: £130.1m Revenue: £140.0m 1.1 1.7 +4% 12.8 Transact (£m) 12.3 Transact Platform revenue for FY24 reflects the following: +9% • Buy commission: reduced in 2023, removed in 2024 116.1 126.1 • No increase in fixed wrapper fee charges
Slide 8: Costs managed in line with guidance
Costs managed in line with guidance FY24 Total Underlying Administrative Expenses (£m) Average headcount +6% Average headcount FY24: 666 Average headcount FY23: 631 +4.5 £83.3m £m +4.6 83.3 24.8 £74.2m 78.8 20.3 58.5 53.9 FY23 Total Underlying Administrative Expenses Personnel costs Non-personnel co
Slide 9: Growing platform revenue, and targeted pricing adjustments
Growing platform revenue, and targeted pricing adjustments Platform revenue (£m), and revenue yield (bps) bps £160 30 £ millions 27.7 25.7 £140 24.7 24.3 23.5 25 £120 20 £100 £80 15 £140.0 £129.6 £130.1 £60 £121.2 £107.3 10 £40 5 £20 £0 0 FY20 FY21 FY22 FY23 FY24 Platform Revenue Platform Revenue Yi
Slide 10: Group liquidity position, and dividends
Group liquidity position, and dividends Group liquidity position (£m) As at 30.09.24 Dividend FY23 FY24 Total Group consolidated cash and UK gilts 242.1 Per share Less: Group cash and UK gilts held for regulatory Ordinary – first interim 3.2 pence 3.2 pence (118.3) and operational purposes Less: for
Slide 11: Financial guidance
Financial guidance FY25 • The Transact platform will make the following targeted price reductions during FY25: • charging one pension wrapper fee per pension type in family linked portfolios, effective from 1 Group revenue April 2025 (annualised cost of c.£2m) • reducing non-advised client charges,
Slide 12: Business update
=: IntegraFin Business update
Slide 13: UK adviser platform market growth opportunities
UK adviser platform market growth opportunities UK platform market by FUD (£bn) Adviser platform assets – forecast by Fundscape 2024-29 £2,000bn CAGR UK Investable Assets that 20% over time could move to £1,800bn UK Platforms c.£2.0trn + £1,600bn UK Platform Market £1,400bn 13% c.£1.1trn £1,200bn 8%
Slide 14: H2 FY24 net inflows momentum
H2 FY24 net inflows momentum Gross and net inflows to the Transact Platform (£bn) H1 FY23 net inflows: £1.6bn H2 FY23 net inflows: £1.0bn H1 FY24 net inflows: £1.1bn H2 FY24 net inflows: £1.5bn 2.3 2.2 2.0 1.8 1.7 1.5 1.5 1.6 0.9 0.8 0.8 0.7 0.6 0.7 0.4 0.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY24 Gross Ne
Slide 15: Award-winning Transact service driving growth
Award-winning Transact service driving growth Award-winning service Increasing adviser numbers Increasing client numbers proposition Category Large Platform (>£25bn FUD)* Category Large Platform (>£30bn FUD)* 235.0k up 2%1 (FY23: 230.3k) 8.0k up 5% (FY23: 7.7k) 94% Client Retention Rate in FY24 Advi
Slide 16: Growth driven by established adviser relationships
Growth driven by established adviser relationships Transact FUD and client numbers growth(1) Source of gross inflows FY24 £70 250 4% (FY23: 4%) Billions Thousands £60 200 £50 38% (FY23: 41%) 150 £40 £30 100 58% (FY23: 55%) £20 50 £10 Inflows from current investors putting more onto the platform Infl
Slide 17: Transact’s proprietary technology is a key differentiator
Transact’s proprietary technology is a key differentiator Gross inflows Technology Technology Platform Platform Net inflows FY24 FY24 Provider Provider 1 Quilter £10.9bn 1 Quilter £4.2bn 2 Aviva £8.5bn 2 Aviva £4.0bn 3 Transact £8.1bn Proprietary 3 Transact £2.5bn Proprietary 4 AJ Bell Investcentre
Slide 18: Major enhancements to the Transact platform have been delivered
Major enhancements to the Transact platform have been delivered Significant proportion of portfolio applications now opened online by adviser firm staff Major enhancement of Transact online functionality, enabling significant online administration of client portfolio records Signalled investment in
Slide 19: Advancing the Group strategy in FY25
Advancing the Group strategy in FY25 Maintaining a strong focus on platform development and best in market service standards • APIs Integrations • Client portal integration • Document sharing with approved third-party systems • Pension income processes online Platform digitalisation • Bond wrapper o
Slide 20: Rule changes supporting ongoing advice demand
Rule changes supporting ongoing advice demand Key changes announced Potential impact Transact’s unique offering • Greater complexity in retirement planning and intergenerational wealth transfer • From April 2027 most inherited pension pots (not to a spouse) will be subject to • Client pension wrappe
Slide 21: Summary
=: IntegraFin Summary
Slide 22: IntegraFin’s strong position, and compelling investment case
IntegraFin’s strong position, and compelling investment case IntegraFin provides a leading UK adviser platform… …delivering strong results 11% av daily Strong gross and net inflows despite the macroeconomic environment £64.1bn FUD FUD CAGR (FY20-FY24) £8.1bn Top 3 in the FUD and Flows adviser plat
Slide 23: Q&A
Q&A Alex Scott – Chief Executive Officer Euan Marshall - Chief Financial Officer
Slide 24: Appendix 1 - IHP Group FY reporting
Appendix 1- IHP Group FY reporting £m FY24 FY23 Revenue 144.9 134.9 Cost of sales (3.0) (3.9) Gross profit 141.9 131.0 Underlying administrative expenses (83.3) (74.2) Non-underlying administrative expenses (1.7) (0.4) Credit loss allowance on financial assets 0.1 (0.1) Operating profit 57.0 56.3 Ne
Slide 25: Appendix 2 - Clear strategy and business model
Appendix 2- We remain focused on our clear strategy and business model The Group’s aim is to be the number 1 provider of software and services for clients and UK financial advisers Our strategy is focused: • We make financial planning easier for clients and their UK financial advisers • We do this b
Slide 26: Appendix 3 - Increasing number of registered advisers on Transact
Appendix 3- We continue to increase the number of registered advisers on Transact, whilst also gaining greater ‘share of adviser wallet’ There are c.35k registered financial advisers in the UK – we estimate c.13k is contestable c.22k c.35k UK registered financial advisers c.5.0k c.8.0k (FY23: 7.7k)
Slide 27: Appendix 4 - UK adviser platform market
Appendix 4- UK adviser platform market Significant growth opportunities - with assets coming to advisers from: savings; consolidation of pensions and ISAs from other providers; inheritance; and, pension accumulation, including under the Government required auto enrolment pension scheme UK adviser pl
Slide 28: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein